Andrew Comstock
CFA

About Andrew

Andrew Comstock has more than 13 years experience as a portfolio manager where he provided clients expertise in investment management, financial planning and retirement planning. He founded Castlebar Asset Management, a fee only registered investment advisory firm, in order to provide his clients with the highest degree of service, independent financial advice and expertise. Mr. Comstock has demonstrated his commitment to his profession by earning the financial industry’s top credential in the Chartered Financial Analyst (CFA) accreditation. Andrew specializes in working with individuals and business owners in the areas of portfolio management, estate planning, and business retirement planning. Castlebar works with clients in the Johnson County Area which includes: Leawood, Overland Park, Lenexa, Shawnee, Olathe, Mission Hills, Prairie Village, Fairway, Westwood as well as Kansas City, Missouri.

A direct rollover from a 401(k) will not trigger a tax event. If you roll the Roth portion into a Roth IRA, the regular 401(k) and employer contribution into a traditional IRA you should not have any issues. The plan sponsor or an investment advisor can walk you through how to make sure this is not a taxable event for you.

Advisors offer free consultations to determine if you're a good fit for one
another. Providing more information in the consultation request will help advisors have a better
sense of what you're looking for. The advisor will contact you via email and set up a time to meet.
Depending on the advisor, and your preferences, this could be an in-person or online meeting. You
are under no obligation to engage them after meeting with them.

Having an emergency fund established is a foundation to becoming financial independent. The next step once you have reached your goal of having three to six months in your emergency fund is how should you investment this money.

When it comes to where to put an emergency fund you should think safety first. This account is not something you are looking to maximize returns. It is there to provide a cushion when the unexpected happens. Your emergency fund should be in either a savings or money market account. In today’s low interest rate world it might seem like nails on a chalk board to hold cash and earn next to nothing. In the moment you need it you’ll be pleased it is there.

Setting up a savings account at an FDIC insured financial institution is a great place to hold this account. Another option is to put it in a money market fund with mutual fund or brokerage company. Money markets could enable you to pick up a little bit more interest but still meet the liquidity requirements needed.

If you just can’t bear the interest rates offered in savings or money market accounts there are a few other options.

Online savings accounts are a way to pick up between 0.5% to 1% in interest over traditional savings accounts. There are many great sites out there that will show which banks are paying the best rates.

Breakable CDs can be a way to get rewarded for parking your emergency fund for a longer period of time. Banks offer a certificate of deposit that will allow you to withdraw money with only a slight penalty of a month or two of interest payments. CDs have the additional benefit of keeping this cash outside of your immediate reach. If you are tempted to use your emergency fund to buy discretionary items this could be a good choice

Blending these accounts or investments is also a smart decision. Keeping three months of expenses in a savings account and three months in CDs or some other combination is an intelligent way to invest your emergency fund.

It is smart to start saving for retirement using a Roth IRA. I would not use it for your emergency account. It best to keep those seperate.

Advisors offer free consultations to determine if you're a good fit for one
another. Providing more information in the consultation request will help advisors have a better
sense of what you're looking for. The advisor will contact you via email and set up a time to meet.
Depending on the advisor, and your preferences, this could be an in-person or online meeting. You
are under no obligation to engage them after meeting with them.

Advisors offer free consultations to determine if you're a good fit for one
another. Providing more information in the consultation request will help advisors have a better
sense of what you're looking for. The advisor will contact you via email and set up a time to meet.
Depending on the advisor, and your preferences, this could be an in-person or online meeting. You
are under no obligation to engage them after meeting with them.

Advisors offer free consultations to determine if you're a good fit for one
another. Providing more information in the consultation request will help advisors have a better
sense of what you're looking for. The advisor will contact you via email and set up a time to meet.
Depending on the advisor, and your preferences, this could be an in-person or online meeting. You
are under no obligation to engage them after meeting with them.

You have many options to look at given the information you have provided. You do not have contribute the max to your 401(k) of $17,500 before you look at other accounts.

I would recommend you take a macro look at your investment and retirement accounts. If you have 75% or more of your investments in tax deferred retirement account than looking at a taxable account may be something to consider. Having diversification in your portfolio is important in both your investments and what type of accounts you have.

You mentioned a Vanguard ETF. You may want to compare the costs of your 401(k) funds to Vanguard's ETFs. If there is a big difference it may be smart to open a Roth (if you are eligible) in addition to your 401(k) contribution. The Roth has many advantages but you do lose the current tax deduction now so keep that in mind.

Advisors offer free consultations to determine if you're a good fit for one
another. Providing more information in the consultation request will help advisors have a better
sense of what you're looking for. The advisor will contact you via email and set up a time to meet.
Depending on the advisor, and your preferences, this could be an in-person or online meeting. You
are under no obligation to engage them after meeting with them.

Add Video

Add Video

Add Video

Preview Video

Disclaimer: We try to keep information accurate and up to date, however we cannot make warranties regarding the accuracy of our information. Please verify FDIC Insurance / NCUA Insurance status, credit card information, and interest rates during the application process. Please note that NerdWallet has financial relationships with some of the merchants mentioned here. NerdWallet may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant.